Watercooler Market News

September 9, 2014

EDEN SPRINGS ACQUIRES FROM NESTLE WATERS DIRECT

Watercoolers Europe Member Eden Springs, has confirmed the acquisition of FIVE watercooler businesses (for an undisclosed sum) from Nestlé Waters Direct in Germany, Russia and Portugal, which are new markets for them; and in Poland and the Netherlands, which will enhance their position in those countries.

Eden Springs already services offices with water and/or coffee in 15 countries and this acquisition will increase their client base from over 650,000 to approximately 1 million.  The deal is expected to increase Eden’s annual turnover by around 30%, from over €280million to approximately €370million.

This reflects Eden Springs’ confidence in the present and future growth of the European water and coffee market following a period of contraction during the recession.

Chief Executive Office of Eden Springs, Raanan Zilberman commented:  “I am excited with the opportunity the NWD acquisitions bring.  Germany is Europe’s strongest economy and offers a big potential for Eden not only in office water services, where we will gain a leading presence, but also for office coffee services.

“We will expand our activities in Eastern Europe in two important markets, Poland and Russia, that will boost future growth and enable us to expand both activities, water and coffee, to a larger potential client base.”

The acquisition will be financed through a combination of equity and debt and is subject to the customary regulatory and other approvals, with both parties working to complete the transaction in the coming month.

Source:  Eden Springs

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FAST CHANGE IN THE WESTERN EUROPE WATER COOLER SECTOR

Zenith International report that while the overall Western Europe watercooler market continued to grow in 2013 by 1%, the change to Point of Use (POU) watercoolers took on speed.

The number of POU units grew by 4%, with bottled watercooler numbers declining by 1%, taking a 57% share in 2013 of the 2.8 million total, down from 58% in 2012.

“POU continues to take market share away from bottles, with many customers making a straight conversion,” said market intelligence director Esther Renfrew.  “Portugal, Norway, Ireland and France have seen conversion rates of over 70%.”

POU also achieved double-figure growth in Austria and Germany, with Switzerland claiming the fastest rise in 2014 at 17%.

The UK retains the lead for watercooler installations, with 24% of the total, higher than in 2012.  Italy and France also saw slight gains at 17% and 15% shares respectively.  Many other countries managed increases in the bottled cooler segment, but Portugal experienced a drop of 7%.

Zenith forecasts that POU numbers will continue to grow faster than bottled watercooler installations, approaching a 50% share in 2018.


Source:  Zenith International